Cahya Mata Sarawak disposal in OM Sarawak to unlock investment value

KUALA LUMPUR: Cahya Mata Sarawak Bhd's (CMS) proposal to dispose of its stake in OM Sarawak for US$120mil is a fair deal and will unlock the value of its investment and free up working capital, says TA Securities Research.

According to the research firm's back-of-the-envelope calculation, the cash consideration of US$120mil will translate into an acquisition price-earnings ratio of about six times FY21 earnings.